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Improving Equipment Reliability using a CMMS/EAM Ben Stevens, OMDEC Inc IPAMC 2006
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Phase 0 – Manual operation, no CMMS
Phase 1: Automate Forms: Work Orders Purchase Orders Issue slips Time cards Specifications
Project led by IT; KPI’s are IT efficiency, database type
35%
CMMS/EAM Evolution Phase 2: Automate Processes: Work Request/Work Order Work Order/ Material Issue Work Order/ Purchasing
Phase 4: Analysis, Information, Knowledge Base, Integration with intelligent agents to improve the quality of the Maintenance Plan
Phase 3: Use of Workflow, Work Management Emergence of EAM Merge and eliminate tasks Streamline functions
Project led by IT; KPI’s are IT efficiency, database type, degree of integration
Project led by Business Unit; KPI’s are cost reduction, materials usage employee productivity
40%
20%
Project led by Maintenance; KPI’s are equipment reliability, number of failures, quality of maintenance, use of best practices
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
5% www.ipamc.org
Cost of Failure
Cost of Failure = Cost of Repair + Cost of Lost Revenue + Penalty Costs
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Failure Costs
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
The Risks of Equipment Failure Unit
Repair Cost
Repair Time
Outage cost per Hour
Repair Risk
Failure Cost
Failure time
Failure Probab 30 days
Run Risk
Risk Ratio
Niigata Diesel
25,000
15 hours
1,000
40,000
100,000
28 days
25%
193,000
193:40 = 5:1
Yuko Turbine
120,000
1 week
2,000
361,000
250,000
60 days
15%
470,000
470:361 = 1.3:1
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Risk versus Time in Equipment Failure
Cost
Run Risk
Next Scheduled Outage Run Risk Repair Risk Repair Risk
Time
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Equipment Failure Risk Ratio Risk Ratio Maximum Acceptable Level of risk
Predicted Risk Ratio level
20 15
Next Planned shutdown date
10 5
Aug 1
Sep 1
Oct 1
Nov 1
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Phase 0 – Manual operation, no CMMS
Phase 1: Automate Forms: Work Orders Purchase Orders Issue slips Time cards Specifications
Project led by IT; KPI’s are IT efficiency, database type
35%
CMMS/EAM Evolution Phase 2: Automate Processes: Work Request/Work Order Work Order/ Material Issue Work Order/ Purchasing
Phase 4: Analysis, Information, Knowledge Base, Integration with intelligent agents to improve the quality of the Maintenance Plan
Phase 3: Use of Workflow, Work Management Emergence of EAM Merge and eliminate tasks Streamline functions
Project led by IT; KPI’s are IT efficiency, database type, degree of integration
Project led by Business Unit; KPI’s are cost reduction, materials usage employee productivity
40%
20%
Project led by Maintenance; KPI’s are equipment reliability, number of failures, quality of maintenance, use of best practices
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
5% www.ipamc.org
Cost of Failure
Cost of Failure = Cost of Repair + Cost of Lost Revenue + Penalty Costs
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Failure Costs
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
The Risks of Equipment Failure Unit
Repair Cost
Repair Time
Outage cost per Hour
Repair Risk
Failure Cost
Failure time
Failure Probab 30 days
Run Risk
Risk Ratio
Niigata Diesel
25,000
15 hours
1,000
40,000
100,000
28 days
25%
193,000
193:40 = 5:1
Yuko Turbine
120,000
1 week
2,000
361,000
250,000
60 days
15%
470,000
470:361 = 1.3:1
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Risk versus Time in Equipment Failure
Cost
Run Risk
Next Scheduled Outage Run Risk Repair Risk Repair Risk
Time
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
Equipment Failure Risk Ratio Risk Ratio Maximum Acceptable Level of risk
Predicted Risk Ratio level
20 15
Next Planned shutdown date
10 5
Aug 1
Sep 1
Oct 1
Nov 1
Ben Stevens OMDEC Inc – Improving Equipment Reliability using a CMMS/EAM
www.ipamc.org
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